SYBT Stock Yards Bancorp Inc

Stock Yards Bancorp, Inc. (NASDAQ: SYBT), parent company of Stock Yards Bank & Trust Company, with offices in Louisville, central, eastern and northern Kentucky, as well as the Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets, today reported earnings of $27.6 million, or $0.94 per diluted share, for the second quarter ended June 30, 2024. This compares to net income of $27.7 million, or $0.94 per diluted share, for the second quarter of 2023. Record loan growth, stable asset quality and net interest margin expansion contributed to second quarter operating results.

(dollar amounts in thousands, except per share data)	2Q24				1Q24				2Q23
Net income	$	27,598			$	25,887			$	27,664
Net income per share, diluted		0.94				0.88				0.94
Net interest income	$	62,022			$	60,070			$	60,929
Provision for credit losses(1)		1,300				1,425				2,350
Non-interest income		23,655				23,271				22,860
Non-interest expenses		49,109				48,961				45,800
Net interest margin		3.26	%			3.20	%			3.42	%
Efficiency ratio(2)		57.26	%			58.68	%			54.57	%
Tangible common equity to tangible assets(3)		8.42	%			8.36	%			7.87	%
Annualized return on average assets(4)		1.35	%			1.28	%			1.46	%
Annualized return on average equity(4)		12.64	%			12.09	%			13.87	%

“Our second quarter results were solid, with record quarterly loan growth, stable credit quality metrics, solid contributions from our non-interest income revenue sources and net interest margin expansion,” commented James A. (Ja) Hillebrand, Chairman and Chief Executive Officer. “Total loans increased $652 million, or 12%, over the last 12 months, $221 million of which was generated during the second quarter of this year. Just as important, second quarter loan growth, led by an increase in Commercial & Industrial (C&I) line of credit expansion, was experienced within all loan categories and spread across all markets.

“Once again, strong non-interest income helped to fuel our operating results for the second quarter of 2024, with our Treasury Management and Wealth Management & Trust (WM&T) groups posting record quarterly revenue. While treasury management fees continued to benefit from customer growth and increased transaction volume, WM&T income was boosted by strong equity market performance, quarterly fees, and net new business expansion,” Hillebrand continued. “Further, we are encouraged by our net interest margin improvement and prospects for continued expansion. Second quarter net interest margin expanded six basis points compared to the linked quarter, boosted by robust loan growth, higher interest earning asset yields and a slow-down in deposit cost expansion.”

As of June 30, 2024, the Company had $8.32 billion in assets, $6.07 billion in loans and $6.57 billion in total deposits. The Company’s combined enterprise, which encompasses 72 branch offices across three contiguous states, will continue to benefit from a diversified geographic footprint that provides significant growth opportunities in both the banking and WM&T arenas.

Key factors contributing to the second quarter of 2024 results included:

• Total loans increased $652 million, or 12%, over the last 12 months, while growing a record $221 million, or 4%, on the linked quarter. Broad based loan growth during the quarter included increases in all markets and across all loan categories, with C&I growth of $63 million, or 5%, posting the largest gain. The yield earned on loans increased to 6.06% for the second quarter of 2024, benefiting from average balance growth and interest rate expansion.
• Deposit balances expanded $361 million, or 6% over the last 12 months, with the deposit mix continuing to shift from non-interest bearing and low interest-bearing deposits into higher cost deposits. Non-interest-bearing demand accounts declined $284 million, or 16%, while interest-bearing deposits grew $645 million, or 15%, led by time deposit growth. On the linked quarter, total deposits contracted $40 million, or 1%, led entirely by interest-bearing deposits.
• Net interest income increased $1.1 million, or 2%, for the second quarter of 2024 compared to the second quarter a year ago, with net interest margin compressing 16 bps to 3.26%. On the linked quarter, net interest income increased $2.0 million, or 3%, while net interest margin expanded 6 bps to 3.26%, representing the first time in six quarters that net interest margin has expanded.
• The Company recorded credit loss expense(1) of $1.3 million for the second quarter of 2024, consistent with strong loan growth and other factors within the CECL allowance model.
• Non-interest income increased $795,000, or 3%, over the second quarter of 2023. WM&T income expanded $649,000, or 6%, to a record $10.8 million, benefitting from strong quarterly fees, improved market conditions and net new business expansion. Treasury management fees also set a record, growing $276,000, or 11% over the last 12 months to $2.8 million. While card income increased $211,000, other non-interest income declined $588,000 over the second quarter of 2023, as the Company elected to strategically exit its insurance captive in late 2023.
• Total non-interest expenses increased $3.3 million, or 7%, during the second quarter of 2024 compared to the second quarter of 2023, primarily due to higher compensation and benefits expenses associated with annual merit increases, increased bonus accruals and elevated health insurance claims activity. Overall, non-interest expenses tracked closely to management expectations.
• Tangible common equity per share(3) was $23.22 on June 30, 2024, compared to $22.50 on March 31, 2024, and $20.17 on June 30, 2023.

Hillebrand concluded, “In May 2024, we once again received the 2023 Raymond James Community Bankers Cup award, recognizing the top 10% of community banks based on various profitability, operational efficiency, and balance sheet metrics. The pool of banks considered for recognition included all exchange-traded domestic banks with assets between $500 million and $10 billion as of December 31, 2023. This recognition not only reflects the success of Stock Yards, but our dedication to providing high quality service to the communities we serve.” Stock Yards Bancorp has been awarded the Raymond James Community Bankers Cup a total of nine times.

Results of Operations – Second Quarter 2024, Compared with Second Quarter 2023

Net interest income, the Company’s largest source of revenue, increased by $1.1 million, or 2%, to $62.0 million. Strong organic loan growth, higher interest earning asset yields and a slow-down in deposit cost expansion contributed to net interest income growth.

• Total interest income increased by $17.2 million, or 21%, to $100.3 million.
  • Interest income and fees on loans increased $17.7 million, or 24%, over the prior year quarter. Consistent with the $687 million, or 13%, increase in average loans and interest rate expansion, the average quarterly yield earned on loans increased 57 basis points over the past 12 months to 6.06%.
  • Interest income on securities decreased $1.2 million, or 13%, compared to the second quarter of 2023. While average securities balances have declined $227 million, or 13%, over the past 12 months, the rate earned on securities remained steady at 2.05%. Over the past 12 months, cash flows from investment portfolio maturities and pay downs have been utilized to fund loan growth and provide liquidity in lieu of redeployment into the portfolio.
  • Interest income on overnight funds increased $493,000, or 30%, consistent with the $27 million quarter over prior year quarter average balance increase coupled with the increase in the Federal Funds Target Rate.

• Total interest expense increased $16.1 million, or 73%, to $38.3 million, as the cost of interest-bearing liabilities increased 94 basis points to 2.75%. For the fifth consecutive linked quarter end, the pace of expansion of total interest-bearing liability costs has slowed.
  • Interest expense on deposits increased $14.5 million over the past 12 months, as the overall cost of interest- bearing deposits increased to 2.56% in the second quarter of 2024 from 1.55% in the second quarter of 2023. Interest expense expansion was spread over most deposit categories, with time deposits expanding the most at $6.2 million.
  • Interest expense on Federal Home Loan Bank (FHLB) advances increased $1.3 million, or 33%. In 2024, in lieu of aggressive deposit promotions, the Company has increased short-term borrowings to fund loan growth, in anticipation of securities maturing in the second half of 2024.

For the second quarter of 2024, consistent with strong loan growth, a slight deterioration in unemployment projections, net recoveries, a marginal increase in specific reserves and other factors within the CECL allowance model, the Company recorded $1.1 million in credit loss expense(1) for loans. In addition, the Company recorded $225,000 expense for off balance sheet exposures associated with expansion of Construction & Land Development and C&I lines of credit. For the second quarter of 2023, the Company recorded $2.2 million in credit loss expense for loans and $200,000 provision expense for off balance sheet exposures.

Non-interest income increased $795,000, or 3%, to $23.7 million compared to the second quarter of 2023.

• WM&T income ended the second quarter of 2024 at a record $10.8 million, increasing $649,000, or 6%, over the second quarter of 2023. WM&T income benefited from net new business growth and equity market performance, coupled with higher quarterly fees collected. WM&T AUM expanded $503 million, or 7%, over the past 12 months to $7.48 billion at quarter end.
• Compared to the second quarter of 2023, treasury management fees increased $276,000, or 11%, to a record $2.8 million. The consistent treasury management growth has been driven by strong transaction volume, organic growth, modified fee schedules, strong foreign exchange income, new product sales and continued expansion of existing relationships.
• Card income increased $211,000, or 4%, over the second quarter of 2023, driven by transaction volume and increased interchange income.
• Other non-interest income declined $588,000 over the second quarter of 2023, as the Company elected to strategically exit its insurance captive in late 2023.

Non-interest expenses, which tracked closely with management expectations, increased $3.3 million, or 7%, compared to the second quarter of 2023, to $49.1 million.

• Compensation and benefits expense increased $2.5 million, or 9%, compared to the second quarter of 2023, consistent with the increase in annual merit increases, increased bonus accruals and elevated health insurance claims activity.
• Net occupancy and equipment expenses increased $305,000, or 9%, over the second quarter of 2023, primarily due to the relocation of all WM&T employees to a consolidated central location.
• Technology and communication expenses, which include computer software amortization, equipment depreciation and expenditures related to investments in technology needed to maintain and improve the quality of customer delivery channels, information security and internal resources, increased $675,000, or 16%, consistent with software upgrades and increased compliance expense.
• Marketing and business development expenses decreased $188,000 or 11%, compared to the second quarter of 2023 primarily due to lower advertising and customer entertainment expense.
• Legal and professional fees increased $366,000 compared to the second quarter of 2023, led by increased compliance-related consulting in preparation for expanded regulatory oversight in conjunction with future growth and higher collection related legal expenses.
• FDIC insurance expense increased $382,000, or 49%, compared to the second quarter of 2023. This expense moves in tandem with asset growth and the FDIC mandated uniform base rate assessment (which was increased in the second quarter of the prior year).
• Amortization of investments in tax credit partnerships declined $324,000 compared to the second quarter of 2023. Effective January 1, 2024, the Bank adopted ASU 2023-02 and began booking tax credit amortization expense for all income tax credit projects as a component of tax expense via the proportional amortization method.
• Other non-interest expenses declined $533,000, or 19%, compared to the second quarter of 2023, primarily due to the Company’s strategic decision to exit its insurance captive in late 2023.

Financial Condition – June 30, 2024, Compared with June 30, 2023

Total assets increased $583 million, or 8%, year over year to $8.32 billion.

Total loans increased $652 million, or 12%, to $6.07 billion, with the commercial real estate and C&I portfolio combining to represent 56% of the growth. In addition to the robust loan growth, the Company has benefitted from the higher rate environment that has generally slowed or muted loan payoff activity. Total line of credit usage was 41.1% as of June 30, 2024, compared to 40.1% as of June 30, 2023, with C&I line of credit usage expanding to 30.8% as of period end.

Total investment securities decreased $200 million, or 13%, year over year. The overall portfolio yield was 2.05% for the second quarter of 2024, which was unchanged from the second quarter of 2023. Over the past 12 months, cash flows from the investment portfolio have been utilized to fund loan growth and provide liquidity in lieu of redeployment.

Total deposits increased $361 million, or 6%, over the past 12 months, with the deposit mix continuing to shift from non-interest bearing and low interest-bearing deposits into higher cost deposits. Non-interest-bearing demand accounts declined $284 million, or 16%, while interest-bearing deposits grew $645 million, or 15%, led by time deposit growth.

For the first six months of 2024, the Company recorded net loan recoveries of $531,000. This compares to $221,000 in net charge offs during the same period in 2023. Non-performing loans totaled $18 million, or 0.29% of total loans outstanding on June 30, 2024, compared to $18 million, or 0.33% of total loans outstanding on June 30, 2023. The ratio of allowance for credit losses to loans ended at 1.35% on June 30, 2024, compared to 1.43% on June 30, 2023.

As of June 30, 2024, the Company continued to be “well-capitalized,” the highest regulatory capital rating for financial institutions, with all capital ratios experiencing meaningful growth. Total equity to assets(3) was 10.76% and the tangible common equity ratio(3) was 8.42% on June 30, 2024, compared to 10.45% and 7.87% on June 30, 2023, respectively.

In May 2024, the board of directors declared a quarterly cash dividend of $0.30 per common share. The dividend was paid July 1, 2024, to shareholders of record as of June 17, 2024.

No shares have been purchased since 2020, and approximately 741,000 shares remain eligible for repurchase under the current buy-back plan, which expires in May 2025.

Results of Operations – Second Quarter 2024, Compared with First Quarter 2024

Net interest margin improved six basis points on the linked quarter to 3.26%, boosted by loan growth, higher interest earning asset yields and a slow-down in deposit cost expansion.

Net interest income increased $2.0 million, or 3%, over the prior quarter to $62.0 million.

• Total interest income increased $3.8 million, or 4%, led by the increase in interest income on loans.
• Total interest expense increased $1.8 million, or 5%,
  • Interest expense on deposits decreased $243,000, led by the interest-bearing demand and money market categories.
  • Interest expense on FHLB advances increased $2.3 million, or 76%. The Bank has increased short-term borrowings to fund current year loan growth (in lieu of aggressive deposit promotions), in anticipation of securities maturing in the second half of the year.

The Company recorded $1.3 million in provision for credit losses(1) during the second quarter of 2024, which included a $1.1 million provision for credit losses on loans and $225,000 of credit loss expense for off-balance sheet exposures. During the first quarter of 2024, the Company recorded $1.4 million in provision for credit losses, which included a $1.2 million provision for credit losses on loans and $250,000 of credit loss expense for off-balance sheet exposures.

Non-interest income increased $384,000, or 2%, on the linked quarter.

• WM&T income expanded $24,000 to record levels, consistent with market expansion and net new business growth.
• Card income increased $241,000, or 5%, consistent with increased transaction volume.
• Treasury management fees increased $200,000, ending at $2.8 million, a quarterly record.

Non-interest expenses increased $148,000, to $49.1 million, as decreases in employee benefits and technology and communication expenses were offset by increases in compensation, net occupancy and equipment and marketing and business development expenses.

Financial Condition – June 30, 2024, Compared with March 31, 2024

Total assets increased $192 million, or 2%, on the linked quarter to $8.32 billion.

Total loans expanded $221 million, or 4%, on the linked quarter, led by increases in every loan category. Total line of credit usage was 41.1% as of June 30, 2024, compared to 38.9% as of March 31, 2024, driven by strong production. C&I line of credit usage totaled 30.8% as of June 30, 2024, compared to 27.3% as of March 31, 2024.

Total deposits decreased $40 million, or 1%, on the linked quarter. Non-interest-bearing demand accounts increased $1 million, while total interest-bearing deposit accounts contracted $41 million. Time deposit growth of $22 million was partially offset by $64 million of money market contraction.

About the Company

Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $8.32 billion in assets, was incorporated in 1988 as a bank holding company. It is the parent company of Stock Yards Bank & Trust Company, which was established in 1904. The Company’s common shares trade on The Nasdaq Stock Market under the symbol “SYBT.”

This report contains forward-looking statements under the Private Securities Litigation Reform Act that involve risks and uncertainties. Although the Company’s management believes the assumptions underlying the forward-looking statements contained herein are reasonable, any of these assumptions could be inaccurate. Therefore, there can be no assurance the forward-looking statements included herein will prove to be accurate. Factors that could cause actual results to differ from those discussed in forward-looking statements include, but are not limited to: economic conditions both generally and more specifically in the markets in which the Company and its banking subsidiary operates; competition for the Company’s customers from other providers of financial services; changes in, or forecasts of, future political and economic conditions, inflation and efforts to control it; government legislation and regulation, which change and over which the Company has no control; changes in interest rates; material unforeseen changes in liquidity, results of operations, or financial condition of the Company’s customers; and other risks detailed in the Company’s filings with the Securities and Exchange Commission, all of which are difficult to predict and many of which are beyond the control of the Company. Refer to Stock Yards’ Annual Report on Form 10-K for the year ended December 31, 2023, as well as its other filings with the SEC for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the forward-looking statements.

Contact:	T. Clay StinnettExecutive Vice President, Treasurer and Chief Financial Officer(502) 625-0890

Stock Yards Bancorp, Inc. Financial Information (unaudited)
Second Quarter 2024 Earnings Release
(In thousands unless otherwise noted)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
Income Statement Data		2024				2023				2024				2023
Net interest income, fully tax equivalent (5)		$	62,113			$	61,074			$	122,279			$	124,319
Interest income:
Loans		$	90,018			$	72,308			$	175,858			$	141,095
Federal funds sold and interest bearing due from banks		2,157				1,664				4,253				3,245
Mortgage loans held for sale		74				77				105				118
Federal Home Loan Bank stock		470				275				938				440
Investment securities		7,585				8,739				15,695				17,632
Total interest income		100,304				83,063				196,849				162,530
Interest expense:
Deposits		31,623				17,081				63,489				30,580
Securities sold under agreements to repurchase		771				376				1,702				832
Federal funds purchased		139				170				275				347
Federal Home Loan Bank advances		5,263				3,962				8,260				5,696
Subordinated debentures		486				545				1,031				1,074
Total interest expense		38,282				22,134				74,757				38,529
Net interest income		62,022				60,929				122,092				124,001
Provision for credit losses (1)		1,300				2,350				2,725				4,975
Net interest income after provision for credit losses		60,722				58,579				119,367				119,026
Non-interest income:
Wealth management and trust services		10,795				10,146				21,566				19,673
Deposit service charges		2,180				2,201				4,316				4,350
Debit and credit card income		4,923				4,712				9,605				9,194
Treasury management fees		2,825				2,549				5,450				4,867
Mortgage banking income		1,017				1,030				1,965				2,068
Net investment product sales commissions and fees		800				800				1,665				1,554
Bank owned life insurance		595				559				1,183				1,108
Gain (loss) on sale of premises and equipment		20				(225		)		20				(227		)
Other		500				1,088				1,156				2,320
Total non-interest income		23,655				22,860				46,926				44,907
Non-interest expenses:
Compensation		24,634				22,107				48,855				44,003
Employee benefits		5,086				5,061				10,962				10,114
Net occupancy and equipment		3,819				3,514				7,489				7,413
Technology and communication		4,894				4,219				9,963				8,470
Debit and credit card processing		1,811				1,706				3,557				3,125
Marketing and business development		1,596				1,784				2,671				2,879
Postage, printing and supplies		913				889				1,839				1,763
Legal and professional		1,185				819				2,300				1,616
FDIC insurance		1,161				779				2,273				1,914
Capital and deposit based taxes		673				607				1,303				1,246
Intangible amortization		1,051				1,172				2,103				2,352
Amortization of investments in tax credit partnerships		-				324				-				647
Other		2,286				2,819				4,755				5,572
Total non-interest expenses		49,109				45,800				98,070				91,114
Income before income tax expense		35,268				35,639				68,223				72,819
Income tax expense		7,670				7,975				14,738				16,107
Net income		$	27,598			$	27,664			$	53,485			$	56,712
Net income per share - Basic		$	0.94			$	0.95			$	1.83			$	1.94
Net income per share - Diluted		0.94				0.94				1.82				1.93
Cash dividend declared per share		0.30				0.29				0.60				0.58
Weighted average shares - Basic		29,283				29,223				29,267				29,200
Weighted average shares - Diluted		29,383				29,340				29,372				29,353
										June 30,
Balance Sheet Data										2024				2023
Investment securities										$	1,342,354			$	1,542,753
Loans										6,070,963				5,418,609
Allowance for credit losses on loans										82,155				77,710
Total assets										8,315,325				7,732,552
Non-interest bearing deposits										1,482,514				1,766,132
Interest bearing deposits										5,086,724				4,442,248
Federal Home Loan Bank advances										400,000				400,000
Accumulated other comprehensive income (loss)										(94,980		)		(107,416		)
Stockholders' equity										894,535				808,082
Total shares outstanding										29,388				29,323
Book value per share (3)										$	30.44			$	27.56
Tangible common equity per share (3)										23.22				20.17
Market value per share										49.67				45.37
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Second Quarter 2024 Earnings Release
		Three Months Ended								Six Months Ended
		June 30,								June 30,
Average Balance Sheet Data		2024				2023				2024				2023
Federal funds sold and interest bearing due from banks		$	158,512			$	131,958			$	156,251			$	136,369
Mortgage loans held for sale		6,204				8,420				5,417				7,446
Investment securities		1,491,865				1,719,045				1,535,132				1,736,734
Federal Home Loan Bank stock		29,735				25,074				25,428				20,311
Loans		5,973,801				5,286,597				5,891,363				5,261,876
Total interest earning assets		7,660,117				7,171,094				7,613,591				7,162,736
Total assets		8,246,735				7,579,439				8,200,049				7,587,211
Non-interest bearing deposits		1,515,708				1,781,338				1,508,155				1,829,554
Interest bearing deposits		4,971,804				4,414,599				5,015,274				4,447,194
Total deposits		6,487,512				6,195,937				6,523,429				6,276,748
Securities sold under agreements to repurchase		147,327				133,051				156,133				117,525
Federal funds purchased		10,127				13,602				10,144				14,915
Federal Home Loan Bank advances		441,484				348,352				357,967				256,215
Subordinated debentures		26,806				26,508				26,800				26,458
Total interest bearing liabilities		5,597,548				4,916,112				5,566,338				4,862,307
Accumulated other comprehensive income (loss)		(99,640		)		(102,970		)		(97,693		)		(104,856		)
Total stockholders' equity		878,233				799,886				869,616				788,782
Performance Ratios
Annualized return on average assets (4)		1.35%				1.46%				1.31%				1.51%
Annualized return on average equity (4)		12.64%				13.87%				12.37%				14.50%
Net interest margin, fully tax equivalent		3.26%				3.42%				3.23%				3.50%
Non-interest income to total revenue, fully tax equivalent		27.58%				27.43%				27.73%				26.63%
Efficiency ratio, fully tax equivalent (2)		57.26%				54.47%				57.96%				53.84%
Capital Ratios
Total stockholders' equity to total assets (3)										10.76%				10.45%
Tangible common equity to tangible assets (3)										8.42%				7.87%
Average stockholders' equity to average assets										10.61%				10.40%
Total risk-based capital										12.62%				12.78%
Common equity tier 1 risk-based capital										11.07%				11.20%
Tier 1 risk-based capital										11.43%				11.61%
Leverage										9.95%				9.83%
Loan Segmentation
Commercial real estate - non-owner occupied										$	1,652,614			$	1,477,733
Commercial real estate - owner occupied										943,013				873,980
Commercial and industrial										1,356,970				1,233,642
Residential real estate - owner occupied										749,870				664,870
Residential real estate - non-owner occupied										365,846				338,727
Construction and land development										586,820				451,324
Home equity lines of credit										223,304				202,574
Consumer										151,221				139,602
Leases										17,258				13,967
Credit cards										24,047				22,190
Total loans and leases										$	6,070,963			$	5,418,609
Asset Quality Data
Non-accrual loans										$	17,371			$	17,364
Modifications to borrowers experiencing financial difficulty										-				-
Loans past due 90 days or more and still accruing										186				437
Total non-performing loans										17,557				17,801
Other real estate owned										10				677
Total non-performing assets										$	17,567			$	18,478
Non-performing loans to total loans										0.29%				0.33%
Non-performing assets to total assets										0.21%				0.24%
Allowance for credit losses on loans to total loans										1.35%				1.43%
Allowance for credit losses on loans to average loans										1.39%				1.48%
Allowance for credit losses on loans to non-performing loans										468%				437%
Net (charge-offs) recoveries		$	183			$	(113	)		$	531			$	(221	)
Net (charge-offs) recoveries to average loans (6)		0.00%				0.00%				0.01%				0.00%
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Second Quarter 2024 Earnings Release
		Quarterly Comparison
Income Statement Data		6/30/24				3/31/24				12/31/23				9/30/23				6/30/23
Net interest income, fully tax equivalent (5)		$	62,113			$	60,167			$	62,112			$	61,437			$	61,074
Net interest income		$	62,022			$	60,070			$	62,016			$	61,315			$	60,929
Provision for credit losses (1)		1,300				1,425				6,046				2,775				2,350
Net interest income after provision for credit losses		60,722				58,645				55,970				58,540				58,579
Non-interest income:
Wealth management and trust services		10,795				10,771				10,099				10,030				10,146
Deposit service charges		2,180				2,136				2,244				2,272				2,201
Debit and credit card income		4,923				4,682				5,374				4,870				4,712
Treasury management fees		2,825				2,625				2,531				2,635				2,549
Mortgage banking income		1,017				948				823				814				1,030
Loss on sale of securities		-				-				(44		)		-				-
Net investment product sales commissions and fees		800				865				860				791				800
Bank owned life insurance		595				588				576				569				559
Gain (loss) on sale of premises and equipment		20				-				(105		)		302				(225		)
Other		500				656				2,059				613				1,088
Total non-interest income		23,655				23,271				24,417				22,896				22,860
Non-interest expenses:
Compensation		24,634				24,221				24,494				23,379				22,107
Employee benefits		5,086				5,876				3,829				4,508				5,061
Net occupancy and equipment		3,819				3,670				5,150				3,821				3,514
Technology and communication		4,894				5,069				4,612				4,236				4,219
Debit and credit card processing		1,811				1,746				1,719				1,637				1,706
Marketing and business development		1,596				1,075				1,754				1,357				1,784
Postage, printing and supplies		913				926				903				938				889
Legal and professional		1,185				1,115				1,293				1,049				819
FDIC insurance		1,161				1,112				1,060				937				779
Capital and deposit based taxes		673				630				601				629				607
Intangible amortization		1,051				1,052				1,167				1,167				1,172
Amortization of investments in tax credit partnerships		-				-				324				323				324
Other		2,286				2,469				3,107				2,721				2,819
Total non-interest expenses		49,109				48,961				50,013				46,702				45,800
Income before income tax expense		35,268				32,955				30,374				34,734				35,639
Income tax expense		7,670				7,068				6,430				7,642				7,975
Net income		$	27,598			$	25,887			$	23,944			$	27,092			$	27,664
Net income per share - Basic		$	0.94			$	0.89			$	0.82			$	0.93			$	0.95
Net income per share - Diluted		0.94				0.88				0.82				0.92				0.94
Cash dividend declared per share		0.30				0.30				0.30				0.30				0.29
Weighted average shares - Basic		29,283				29,250				29,226				29,223				29,223
Weighted average shares - Diluted		29,383				29,361				29,331				29,336				29,340
		Quarterly Comparison
Balance Sheet Data		6/30/24				3/31/24				3/31/24				9/30/23				6/30/23
Cash and due from banks		$	85,441			$	71,676			$	94,466			$	79,538			$	111,126
Federal funds sold and interest bearing due from banks		118,910				88,547				171,493				113,499				103,204
Mortgage loans held for sale		6,438				6,462				6,056				6,535				7,069
Investment securities		1,342,354				1,379,212				1,471,016				1,465,453				1,542,753
Federal Home Loan Bank stock		31,462				24,675				16,236				26,241				27,366
Loans		6,070,963				5,849,715				5,771,038				5,617,084				5,418,609
Allowance for credit losses on loans		82,155				80,897				79,374				78,075				77,710
Goodwill		194,074				194,074				194,074				194,074				194,074
Total assets		8,315,325				8,123,128				8,170,102				7,903,430				7,732,552
Non-interest bearing deposits		1,482,514				1,481,217				1,548,624				1,714,918				1,766,132
Interest bearing deposits		5,086,724				5,127,863				5,122,124				4,687,889				4,442,248
Securities sold under agreements to repurchase		152,948				162,528				152,991				113,894				138,347
Federal funds purchased		10,029				9,961				12,852				11,518				11,646
Federal Home Loan Bank advances		400,000				200,000				200,000				350,000				400,000
Subordinated debentures		26,806				26,806				26,740				26,641				26,541
Accumulated other comprehensive income (loss)		(94,980		)		(95,054		)		(92,798		)		(127,905		)		(107,416		)
Stockholders' equity		894,535				874,711				858,103				806,918				808,082
Total shares outstanding		29,388				29,393				29,329				29,323				29,323
Book value per share (3)		30.44				$	29.76			$	29.26			$	27.52			$	27.56
Tangible common equity per share (3)		23.22				22.50				21.95				20.17				20.17
Market value per share		49.67				48.91				51.49				39.29				45.37
Capital Ratios
Total stockholders' equity to total assets (3)		10.76%				10.77%				10.50%				10.21%				10.45%
Tangible common equity to tangible assets (3)		8.42%				8.36%				8.09%				7.69%				7.87%
Average stockholders' equity to average assets		10.65%				10.56%				10.07%				10.39%				10.53%
Total risk-based capital		12.62%				12.69%				12.56%				12.71%				12.78%
Common equity tier 1 risk-based capital		11.07%				11.11%				11.04%				11.17%				11.20%
Tier 1 risk-based capital		11.43%				11.49%				11.43%				11.57%				11.61%
Leverage		9.95%				9.82%				9.62%				9.80%				9.83%
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Second Quarter 2024 Earnings Release
		Quarterly Comparison
Average Balance Sheet Data		6/30/24				3/31/24				12/31/23				9/30/23				6/30/23
Federal funds sold and interest bearing due from banks		$	158,512			$	153,990			$	258,950			$	124,653			$	131,958
Mortgage loans held for sale		6,204				4,629				5,305				7,112				8,420
Investment securities		1,491,865				1,578,401				1,618,799				1,659,888				1,719,045
Federal Home Loan Bank stock		29,735				21,121				20,519				27,290				25,074
Loans		5,973,801				5,808,924				5,676,193				5,486,262				5,286,597
Total interest earning assets		7,660,117				7,567,065				7,579,766				7,305,205				7,171,094
Total assets		8,246,735				8,153,364				8,116,569				7,805,154				7,594,901
Non-interest bearing deposits		1,515,708				1,500,602				1,663,962				1,731,724				1,781,338
Interest bearing deposits		4,971,804				5,058,743				5,025,240				4,509,411				4,414,599
Total deposits		6,487,512				6,559,345				6,689,202				6,241,135				6,195,937
Securities sold under agreement to repurchase		147,327				164,979				130,148				127,063				113,051
Federal funds purchased		10,127				10,161				13,606				11,776				13,602
Federal Home Loan Bank advances		441,484				274,451				205,435				401,630				348,352
Subordinated debentures		26,806				26,794				26,706				26,606				26,508
Total interest bearing liabilities		5,597,548				5,535,128				5,401,135				5,076,486				4,916,112
Accumulated other comprehensive income (loss)		(99,640		)		(95,747		)		(125,843		)		(112,329		)		(102,970		)
Total stockholders' equity		878,233				861,029				817,682				810,710				799,886
Performance Ratios
Annualized return on average assets (4)		1.35%				1.28%				1.17%				1.38%				1.46%
Annualized return on average equity (4)		12.64%				12.09%				11.62%				13.26%				13.87%
Net interest margin, fully tax equivalent		3.26%				3.20%				3.25%				3.34%				3.42%
Non-interest income to total revenue, fully tax equivalent		27.58%				27.89%				28.22%				27.15%				27.24%
Efficiency ratio, fully tax equivalent (2)		57.26%				58.68%				57.80%				55.38%				54.57%
Loans Segmentation
Commercial real estate - non-owner occupied		$	1,652,614			$	1,609,483			$	1,561,689			$	1,557,977			$	1,527,453
Commercial real estate - owner occupied		943,013				931,973				907,424				896,522				825,026
Commercial and industrial		1,356,970				1,293,696				1,307,128				1,251,027				1,233,642
Residential real estate - owner occupied		749,870				723,234				708,893				696,162				664,870
Residential real estate - non-owner occupied		365,846				360,958				358,715				349,624				337,961
Construction and land development		586,820				532,183				531,324				480,120				451,324
Home equity lines of credit		223,304				212,443				211,390				203,184				202,574
Consumer		151,221				145,022				145,340				143,703				139,602
Leases		17,258				16,619				15,503				14,710				13,967
Credit cards		24,047				24,104				23,632				24,055				22,190
Total loans and leases		$	6,070,963			$	5,849,715			$	5,771,038			$	5,617,084			$	5,418,609
Asset Quality Data
Non-accrual loans		$	17,371			$	13,984			$	19,058			$	17,227			$	17,364
Modifications to borrowers experiencing financial difficulty		-				-				-				-				-
Loans past due 90 days or more and still accruing		186				106				110				1				437
Total non-performing loans		17,557				14,090				19,168				17,228				17,801
Other real estate owned		10				10				10				427				677
Total non-performing assets		$	17,567			$	14,100			$	19,178			$	17,655			$	18,478
Non-performing loans to total loans		0.29%				0.24%				0.33%				0.31%				0.33%
Non-performing assets to total assets		0.21%				0.17%				0.23%				0.22%				0.24%
Allowance for credit losses on loans to total loans		1.35%				1.38%				1.38%				1.39%				1.43%
Allowance for credit losses on loans to average loans		1.38%				1.39%				1.40%				1.42%				1.47%
Allowance for credit losses on loans to non-performing loans		468%				574%				414%				453%				437%
Net (charge-offs) recoveries		$	183			$	348			$	(4,472	)		$	(1,935	)		$	(113	)
Net (charge-offs) recoveries to average loans (6)		0.00%				0.01%				-0.08%				-0.04%				-0.00%
Other Information
Total assets under management (in millions)		$	7,479			$	7,496			$	7,160			$	6,670			$	6,976
Full-time equivalent employees		1,051				1,062				1,075				1,056				1,056
(1) - Detail of Provision for credit losses follows:
		Quarterly Comparison
(in thousands)		6/30/24				3/31/24				12/31/23				9/30/23				6/30/23
Provision for credit losses - loans		$	1,075			$	1,175			$	5,771			$	2,300			$	2,150
Provision for credit losses - off balance sheet exposures		225				250				275				475				200
Total provision for credit losses		$	1,300			$	1,425			$	6,046			$	2,775			$	2,350
(2) - The efficiency ratio, a non-GAAP measure, equals total non-interest expenses divided by the sum of net interest income (FTE) and non-interest income.
		Quarterly Comparison
(Dollars in thousands)		6/30/24				3/31/24				12/31/23				9/30/23				6/30/23
Total non-interest expenses (a)		$	49,109			$	48,961			$	50,013			$	46,702			$	45,800
Total net interest income, fully tax equivalent		$	62,113			$	60,167			$	62,112			$	61,437			$	61,074
Total non-interest income		23,655				23,271				24,417				22,896				22,860
Total revenue - Non-GAAP (b)		85,768				83,438				86,529				84,333				83,934
Efficiency ratio - Non-GAAP (a/b)		57.26%				58.68%				57.80%				55.38%				54.57%
(3) - The following table provides a reconciliation of total stockholders’ equity in accordance with GAAP to tangible stockholders’ equity, a non-GAAP disclosure. Bancorp provides the tangible book value per share, a non-GAAP measure, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy:
		Quarterly Comparison
(In thousands, except per share data)		6/30/24				3/31/24				12/31/23				9/30/23				6/30/23
Total stockholders' equity - GAAP (a)		$	894,535			$	874,711			$	858,103			$	806,918			$	808,082
Less: Goodwill		(194,074		)		(194,074		)		(194,074		)		(194,074		)		(194,074		)
Less: Core deposit and other intangibles		(18,201		)		(19,252		)		(20,304		)		(21,471		)		(22,638		)
Tangible common equity - Non-GAAP (c)		$	682,260			$	661,385			$	643,725			$	591,373			$	591,370
Total assets - GAAP (b)		$	8,315,325			$	8,123,128			$	8,170,102			$	7,903,430			$	7,732,552
Less: Goodwill		(194,074		)		(194,074		)		(194,074		)		(194,074		)		(194,074		)
Less: Core deposit and other intangibles		(18,201		)		(19,252		)		(20,304		)		(21,471		)		(22,638		)
Tangible assets - Non-GAAP (d)		$	8,103,050			$	7,909,802			$	7,955,724			$	7,687,885			$	7,515,840
Total stockholders' equity to total assets - GAAP (a/b)		10.76%				10.77%				10.50%				10.21%				10.45%
Tangible common equity to tangible assets - Non-GAAP (c/d)		8.42%				8.36%				8.09%				7.69%				7.87%
Total shares outstanding (e)		29,388				29,393				29,329				29,323				29,323
Book value per share - GAAP (a/e)		$	30.44			$	29.76			$	29.26			$	27.52			$	27.56
Tangible common equity per share - Non-GAAP (c/e)		23.22				22.50				21.95				20.17				20.17
(4) - Return on average assets equals net income divided by total average assets, annualized to reflect a full year return on average assets. Similarly, return on average equity equals net income divided by total average equity, annualized to reflect a full year return on average equity.
(5) - Interest income on a FTE basis includes the additional amount of interest income that would have been earned if investments in certain tax-exempt interest earning assets had been made in assets subject to federal, state and local taxes yielding the same after-tax income.
(6) - Quarterly net (charge-offs) recoveries to average loans ratios are not annualized.